Study: Automotive Suppliers 2017 | Page 10

10 First signs of a rougher tone between automotive suppliers and OEMs RATIONALE goetzpartners' GEAR STUDY 2016 RESULTS goetzpartners’ GEAR study periodically examines suppliers’ level of satisfaction with their supplied OEMs. 2016 edition of the GEAR study revealed a decrease in the overall level of satisfaction. goetzpartners senses an increasingly rough tone between OEMs and suppliers, mainly triggered by suppliers’ dissatisfaction with their margins and a lower quality of cooperation during project phases. The key future success factors for suppliers lie in active innovation management, improved cooperation with the OEM, and stricter cost control, e.g. through modularization, production flexibility, or OPEX optimization. CRITERIA FOR SUPPLIERS’ OVERALL SATISFACTION INNOVATION 83% 68% RELIABILITY € MARGIN PROJECT WORK Bar indicates impact of the criterion on overall satisfaction with the OEM; % = Frequency of being mentioned by supplier 72% 90% SUPPLIERS’ SATISFACTION WITH MARGINS 49% 51% 33% Satisfied 67% Unsatisfied “We suffer from constantly high cost pressure and receive no support in meeting our strict targets!“ SUPPLIERS’ SATISFACTION DURING PROJECT PHASES Concept 2.3 2.8 Commisioning 2.7 GEAR 2013 GEAR 2016 Serial Development Start-up stage 3.2 2.4 2.8 2.3 2.9 (School grades – German GPA; 1= highest, 6=lowest) “Silence is silver, but talk is golden; we want more communication!” GEAR 2013 GEAR 2016 Revisions 2.8 3.2 Source: goetzpartners analysis